London in the changing healthcare market

July 2004

The winds of change in private healthcare, whilst blowing more actively around the country, are beginning to affect London practice. The moves by some hospital providers (Capio, Nuffield and BUPA Insurance) to go downmarket in an attempt to gain cheap NHS or other contracts has so far not affected London. ISTCs with foreign contractors have likewise seemed remote from mainstream London practice. Whether this will continue indefinitely is another matter.

London private hospitals (particularly those in central London) may be insulated from some of these changes because of their relatively wealthy communities, the overseas market and the fact that many offer tertiary, complex and other services. The fact that self-pay in some central London hospitals was lower than that in the periphery may mean that this lost market will have less impact on London hospitals.

Contracting for NHS work has and is taking place in various London hospitals but this is relatively uncommon as at the moment the hospitals are relatively full of more profitable fee paying patients.

Overall prediction of market change at this time are impossible to make but London consultants should not feel that they will be totally insulated from downward pressure from government, ISTCs, the National Tariffs and the insurers’ demands for ever cheaper and cheaper fees.